S&P cuts Tortoise Parent

S&P said it lowered its issuer credit rating on Tortoise Parent Holdco LLC to B from BB-. The agency also lowered its debt rating on Tortoise's secured first-lien term loan and secured revolving facility to B- from BB-. At the same time, S&P revised the recovery rating on the company's debt to 5, indicating an expectation for modest (mid-20% area) recovery.

“We believe Tortoise's leverage, as measured by debt to EBITDA, will be higher than we anticipated earlier and will likely remain well above 5x over the next several years. We think Tortoise is more exposed to energy volatility despite operating in its niche in asset management. As a result, we have reassessed the company's business risk profile (BRP) to weak from fair,” said S&P in a press release.

The outlook is negative.

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